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More Resources
Chexsystems
ChexSystems is subject to
FCRA Rules and they must
investigate all disputes.
Debt Validation
Stop the collection process by
requesting a collection agency
to validate your debt.
Options to Foreclosure
There are options to
foreclosure, you do not have to
lose your home.
ChexSystems is subject to
FCRA Rules and they must
investigate all disputes.
Debt Validation
Stop the collection process by
requesting a collection agency
to validate your debt.
Options to Foreclosure
There are options to
foreclosure, you do not have to
lose your home.
Good Debt vs. Bad Debt
by Lisa Phillips
February 9, 2010
by Lisa Phillips
February 9, 2010
Another good debt would be investments
(perhaps not the stock market these days).
Social Lending Invest money in prime
borrowers. Average net annualized returns of
9.9%.
College tuition holds a future payoff as
statistics show that college graduates earn
more money than high school graduates.
According the U.S. Census, adults 18 and
older with a bachelor's degree earned an
average of $51,554 in 2004, compared to
$28,645 for those with only a high school
diploma. Those with advanced degrees took
home an average of $78,093 a year.
(perhaps not the stock market these days).
Social Lending Invest money in prime
borrowers. Average net annualized returns of
9.9%.
College tuition holds a future payoff as
statistics show that college graduates earn
more money than high school graduates.
According the U.S. Census, adults 18 and
older with a bachelor's degree earned an
average of $51,554 in 2004, compared to
$28,645 for those with only a high school
diploma. Those with advanced degrees took
home an average of $78,093 a year.
America is in debt, so it seems natural that Americans are in debt also. However, according to
the Federal Reserve’s Flow of Funds Report, household debt fell by $30 billion in the third
quarter of 2008. While this may sound like good news it’s really a result of some negative
circumstances. As the credit crunch looms consumers are finding it more difficult to obtain
financing for good debt items such as homes and college tuition.
Good Debt
Good debt is debt that holds a future payoff to you. Creating debt for a mortgage can be
considered good debt if the interest rates are low and real estate values are expected to rise
over time.
the Federal Reserve’s Flow of Funds Report, household debt fell by $30 billion in the third
quarter of 2008. While this may sound like good news it’s really a result of some negative
circumstances. As the credit crunch looms consumers are finding it more difficult to obtain
financing for good debt items such as homes and college tuition.
Good Debt
Good debt is debt that holds a future payoff to you. Creating debt for a mortgage can be
considered good debt if the interest rates are low and real estate values are expected to rise
over time.
Bad Debt
Bad debt would be considered high interest rate credit cards and retail cards. The store credit
cards can be the worst. We have all been tempted by store clerks to open those “instant”
credit cards to save 10% off a purchase. It’s not worth it. Store credit cards offer some of the
HIGHEST interest rates.
If you have any bad debt, pay it off as soon as possible. Start to pay your highest interest rate
credit cards off first. You want to get rid of those immediately. Never, if possible, pay the
minimum due on your high interest rate credit cards. It will only cover the interest owed and
almost never attack the principal balance. See Eliminate Debt to find out how paying the
minimum will keep you in debt.
Continue getting rid of bad debt by paying off one high interest rate credit card after another
while paying the minimum on your other credit cards. In the meantime, take steps to reduce
household expenses such as grocery shopping and transportation costs. Reduce discretionary
expenses such as entertainment, Starbucks coffee and eating out.
Bad debt would be considered high interest rate credit cards and retail cards. The store credit
cards can be the worst. We have all been tempted by store clerks to open those “instant”
credit cards to save 10% off a purchase. It’s not worth it. Store credit cards offer some of the
HIGHEST interest rates.
If you have any bad debt, pay it off as soon as possible. Start to pay your highest interest rate
credit cards off first. You want to get rid of those immediately. Never, if possible, pay the
minimum due on your high interest rate credit cards. It will only cover the interest owed and
almost never attack the principal balance. See Eliminate Debt to find out how paying the
minimum will keep you in debt.
Continue getting rid of bad debt by paying off one high interest rate credit card after another
while paying the minimum on your other credit cards. In the meantime, take steps to reduce
household expenses such as grocery shopping and transportation costs. Reduce discretionary
expenses such as entertainment, Starbucks coffee and eating out.